Fertilizers

HOUSTON (ICIS)–Global commodities group Trafigura, in collaboration with US fertilizer producer CF Industries, announced the completion of the first co-loaded ammonia and propane shipment operation of its kind. In early January, the Green Power medium gas carrier completed a single voyage from the US to Europe loaded with ammonia from CF Industries and with liquefied petroleum gas (LPG) in separate tanks. The co-loaded vessel project was intended in part as a demonstration of capabilities needed for the efficient and economic transport of low-carbon ammonia to supply ports that may not require a full vessel of ammonia. The companies said the ability to co-load low-carbon ammonia with LPG is one pathway to supporting the scale up in availability of low emission fuels. It was noted that low-carbon ammonia continuing to be a leading alternative fuel candidate for applications such as coal co-firing as well as supporting the marine shipping industry transition from heavy fuel oil to alternatives with a lower-carbon intensity. “We transport LPG and ammonia from the US to Europe on similar ships on a regular basis,” said Patricio Norris, Trafigura global head of ammonia and LPG. “We can improve the economics for our customers and reduce emissions with fewer voyages by safely co-loading ammonia and LPG in the same vessel.” The ammonia was loaded onto the Green Power at CF Industries Donaldsonville, Louisiana, complex and LPG was loaded into separate tanks of the vessel in Corpus Christi, Texas. CF Industries said strict segregation requirements ensured that any crossover of liquid, condensate or vapor was prevented. After crossing the LPG was discharged via a ship-to-ship operation in the Mediterranean for use in domestic heating and the ammonia was discharged at Tees Port for CF Fertilisers UK. “We appreciate the partnership we have with Trafigura as we take steps together to help prepare for demand growth of low-carbon ammonia and the expected transition of the marine shipping industry to low-carbon ammonia as a fuel,” said Bert Frost, CF Industries executive vice president. “Ammonia is safely transported around the world by vessels daily, and this voyage reinforces the flexibility we have to serve emerging low-carbon ammonia demand as we innovate shipping methods with industry-leaders such as Trafigura.” This shipment follows Trafigura’s first ship-to-ship transfer of ammonia in July 2024 for CF Industries. The fertilizer producer is currently progressing a carbon capture and sequestration (CCS) project at Donaldsonville which will enable it to produce substantial volumes of low-carbon ammonia. The CCS project is expected to start-up during 2025.

16-Jan-2025

HOUSTON (ICIS)–Brazil Potash announced it has signed a memorandum of understanding (MOU) between Potassio do Brasil, a subsidiary of the company, and fertilizer trading company Keytrade AG for potential offtake of up to 1 million short tons/year of potash from the Autazes Potash project. Located in the state of Amazonas with the proposed mine and processing facilities located 75 miles southeast of the state capital Manaus, the estimated $2.5 billion project would become Brazil’s largest potash project. The company said the initial annual production is projected be 2.4 million short tons yearly and believes it could potentially supply approximately 17% of the potash demand within the country with future plans to double output. Brazil Potash envisions not only reduce Brazil’s reliance on potash imports but also mitigating approximately 1.4 million short tons/year of emissions. “This MOU with Keytrade represents another important step towards Brazil Potash's development and validates our strategic position in Brazil as a potential premier domestic potash supplier,” said Adriano Espeschit, Potassio do Brasil president. “Combined with our existing offtake agreement with AMAGGI, we have now secured potential commitments for approximately 1.5 million short tons of our planned 2.4 million short tons of annual potash production, providing strong foundational support for project financing.” The company noted that Brazil is critical for global food security as the country has among the highest amounts of fresh water, arable land and an ideal climate for year-round crop growth. Yet it is viewed as being vulnerable as it imports over 95% of its potash despite having what is anticipated to be one of the world’s largest undeveloped potash basins. Currently it is planned that the potash produced will be transported primarily using low-cost river barges through an inland system in partnership with logistical operators Amaggi.

16-Jan-2025

LONDIN (ICIS)–Here are the 2025 Europe Outlook stories which ran on ICIS news from 23 December 2024 to 3 January 2025. Click on a headline to read the full story. 2025 OUTLOOKS SUMMARY OUTLOOK ’25: Global fertilizer sector braced for a tricky start to 2025 The global fertilizer sector is bracing itself for a bumpy ride moving into 2025 as it starts the year with high operating costs and struggling grain markets, making affordability for farmers and growers a key concern. OUTLOOK ‘25: New production capacity expected to drive the ammonia market in 2025 Ammonia players are expecting more supply to come onstream in 2025 which could support a subdued market. OUTLOOK ‘25: Refining constraints, Dangote disruption, cracker closures to shake Europe naphtha market After a tumultuous 2024, the outlook for the naphtha and gasoline markets in 2025 reflects a complex interplay of supply dynamics, demand fluctuations, and geopolitical factors. OUTLOOK: 2025 will be critical to Europe pyrolysis oil scalability Legislative uncertainty, long commissioning times and macroeconomic headwinds will continue to negatively weigh on European pyrolysis oil market growth and investment decisions in 2025. OUTLOOK '25: Jet fuel demand poised for take-off despite oversupply worries Jet fuel demand in Europe is expected to maintain an upward trajectory in 2025 despite a potential supply glut. However, much will depend on the airline industry's ability to navigate through economic and geopolitical turbulence and its commitment to adopt sustainable aviation fuel (SAF). OUTLOOK ’25: Europe ethanol market could face supply challenges amid demand stability Mixed harvest yields in 2024 lead as one of several supply factors that is likely to shape the European ethanol market in 2025. OUTLOOK ’25: Europe biodiesel to face mixed supply, sluggish blending rates Evolving supply factors are set to meet relatively stable-to-low demand in the European biodiesel market for 2025. OUTLOOK '25: More of the same for Europe ethylene, propylene The best we can hope for is a re-run of 2024, European ethylene and propylene market players say, and there is very little expectation that Europe’s base case demand improves in any meaningful way in 2025. OUTLOOK '25: Europe ethanolamines market 2025 expectations subdued but braced for any supply shocks For 2025, similar underlying demand trends seen in the second half of 2024 are expected to carry across into the first half of 2025 with sentiment to remain broadly subdued. OUTLOOK '25: Europe PE faces triple threat of cost squeeze, overcapacity, longer supply chains European polyethylene (PE) markets face a triple whammy of high local costs, overcapacity globally and the risk of lengthening supply chains at a time when global trade flows are threatened by tariff wars in 2025 OUTLOOK ’25: Economic woes to continue stifling Turkish PE/PP demand Economic concerns continue to dampen demand expectations for Turkish polyethylene (PE) and polypropylene (PP) for the first half of 2025. OUTLOOK '25: Africa PE/PP players expect year of stagnation on oversupplied market Could 2025 finally be the year? A return to healthy polyethylene (PE) and polypropylene (PP) demand across Africa? OUTLOOK ’25: Positive view for European R-LDPE packaging grades, other sectors face tough start Demand for low and high melt flow index (MFI) grades of recycled low density polyethylene (R-LDPE) from the packaging sector will continue to grow in 2025 but construction-related grades may suffer due to low end-use market demand. OUTLOOK '25: Europe R-HDPE packaging/non-packaging divide deepens The fragmentation between packaging and non-packaging grades of Europe recycled high density polyethylene (R-HDPE) is expected to continue in 2025, while consolidation risk across the market remains high – particularly for companies heavily exposed to the construction sector. OUTLOOK '25: Europe R-PP increasingly fragmented by end-use demand Demand for Europe recycled polypropylene (R-PP) has radically diverged by the end-use market across 2024, and this is expected to continue in 2025. OUTLOOK '25: Europe PP players eye pain points from old plants, tariff threats and limp manufacturing 2024 was dominated by supply-driven dynamics and 2025 looks unlikely to be much different for Europe's polypropylene (PP) market. OUTLOOK '25: Europe Mixed plastic waste demand remains driven by mechanical recycling in 2025 Europe mixed plastic waste demand will remain weak for as long as overall industrial production remains limited by macroeconomic headwinds. OUTLOOK ’25: Europe ACN set for another year of confined demand Downstream demand constraints brought on by geopolitics-led macroeconomic challenges are anticipated to persist into 2025 for Europe's acrylonitrile (ACN) market. OUTLOOK ’25: Europe BDO demand pessimism to continue under the gloom of rising capacities in China There is a growing sense of apathy among players in the European butanediol (BDO) market when it comes to discussing demand hopes for 2025 as there are no expectations of an uptick and there is a prevalence of worry ahead of growing capacity in China in an already oversupplied market. OUTLOOK ’25: Europe SBR demand overshadowed by automotive challenges European styrene butadiene rubber (SBR) demand could lift slightly in January on restocking activity, but there are still longer-term concerns over the timeline for recovery of the automotive industry. OUTLOOK '25: Europe ABS and SAN demand to stay weak, imports unclear as ABS ADD investigation begins Demand has been mostly weak throughout 2024 in the Europe acrylonitrile butadiene styrene (ABS) and styrene-acrylonitrile (SAN) markets, as downstream sectors have continued to be impacted by ongoing pressures, and similar is expected to continue into 2025. OUTLOOK ’25: Europe OX market to see little demand recovery despite lower interest rates The European orthoxylene (OX) market is gearing up for 2025 with the expectation of stable-to-slightly firmer downstream demand, in particular from the second quarter onwards. OUTLOOK ’25: Europe PX demand to remain downbeat in H1 2025 amid downstream rationalizations, imports Paraxylene (PX) demand pessimism in Europe is expected to continue in the first half of 2025 due to the rationalization of downstream purified terephthalic acid (PTA) plants in the region. OUTLOOK '25: Europe CX, capro markets face stable, low demand in 2025 The European cyclohexane (CX) and caprolactam (capro) markets face broadly stable but overall weak demand in 2025, as a lack of optimism in key downstream sectors and ongoing challenging macroeconomic conditions hit sentiment. OUTLOOK ’25: Europe MX consumption to remain subdued Downstream requirements for mixed xylenes (MX) in Europe was limited in 2024 and there are similar expectations for 2025. OUTLOOK '25: Europe styrene market squeezed as imports climb, demand feeble The European styrene market is expected to face increased competition and complexity in 2025, requiring players to navigate fragile domestic supply, a bearish and uncertain demand outlook, and rising import volumes. OUTLOOK '25: Europe PS, EPS demand mostly unchanging, potential PS import competition Throughout 2024, the Europe polystyrene (PS) market has faced stable demand at a low level, and expandable polystyrene (EPS) demand has been very weak, as ongoing pressures have continued to impact downstream activity in both markets, and 2025 could be similar. OUTLOOK '25: Europe benzene market limps into 2025 as supply surplus, demand uncertainty prevails The Europe benzene market is expected to see generally sufficient supply in the first half of 2025, with tightness likely only in the Mediterranean region. OUTLOOK '25: Europe toluene supply conditions to be in better shape than demand Consumption of toluene in Europe ended up limited in 2024 with supply in relatively in good condition, with similar views for 2025. OUTLOOK ’25: Europe PET/PTA markets hang by a thread in battle to survive The polyethylene terephthalate (PET) value chain in Europe remains in survival mode as consumption is negatively affected by macroeconomics, while costs and logistics remain challenging. OUTLOOK ’25: Europe R-PET hopes for better year but challenges remain Participants across the European recycled polyethylene terephthalate (R-PET) market are hoping for better demand from Q1 2025 after the Single Use Plastics Directive (SUPD) comes into force in January, but cheap PET, imports of R-PET flake and pellet, and unpredictable consumer spending all pose potential problems. OUTLOOK ’25: European MEG supply more limited at end Q1, demand expectations bearish European monethylene glycol (MEG) supply could be more balanced at the end of the first quarter or beginning of the second on turnarounds, but general concerns surrounding oversupply and slow demand continue to dampen expectations of a sustained market recovery. OUTLOOK '25: Low but steady demand expected in Europe nylon market Europe nylon 6 and nylon 6,6 markets face ongoing low but overall stable demand in 2025, as key downstream markets are in peril from persistently challenging macroeconomic conditions and low end-buyer demand. OUTLOOK 25’: PVC demand may return to growth but unlikely to offset overcapacity The polyvinyl chloride (PVC) market in Europe is likely to see a modest recovery in 2025 after demand weakness in 2024, but this will be offset by excess global capacity and low utilization rates at existing plants. OUTLOOK 25’: Last caustic soda producer to sit down is out 2025 is likely to resemble a high-stakes game of musical chairs for European chlor-alkali producers. OUTLOOK '25: Ample supply for Europe acetic acid and VAM despite import constraints, outages Weak demand was the most significant influence on European acetic acid and derivative vinyl acetate monomer (VAM) conditions throughout 2024. OUTLOOK '25: Europe AA bracing for ‘more of the same’ for 2025 The Europe acrylic acid (AA) market is bracing itself for “more of the same” with the challenges of 2024 set to roll into the New Year. OUTLOOK '25: Europe acrylate esters bracing for continued challenges in 2025 The Europe acrylate ester market is bracing for the challenges of 2024 to continue into 2025, with added geopolitical and economic volatility. OUTLOOK '25: Europe MMA set to see 2024 challenges continue into 2025 The Europe methyl methacrylate (MMA) is bracing itself for the challenges seen in 2024 to continue into the New Year. OUTLOOK '25: Europe PMMA hoping for demand growth, but bracing for stagnant market The Europe polymethyl methacrylate (PMMA) market is bracing for 2025 to be “more of the same” with the challenges of 2024 continuing. OUTLOOK '25: European phenol and acetone markets face demand stagnation and global capacity growth in 2025 Fresh global capacity, low domestic demand, logistics difficulties and volatile feedstocks will all challenge Europe's phenol and acetone markets in 2025. OUTLOOK '25: European refinery solvents to track feedstocks in 2025, demand trends unchanged In 2025, European refinery solvents markets will be pinned to the developments in upstream crude and energy sectors. OUTLOOK ’25: Europe methylene chloride consumption to remain stable in H1 Demand for methylene chloride (MEC) in Europe is projected to stay stable at a low level, as persistent challenges that plagued the market in 2024 are expected to continue in 2025. OUTLOOK '25: Europe EO demand expected to lift slightly in January European ethylene oxide (EO) 2025 discussions largely centred around stable-to-soft agreements, depending on starting point and account, at the end of 2024, even as demand is expected to increase in January. OUTLOOK ’25: Demand stagnates, capacity expands in Europe MPG, PO markets Players in the European mono propylene glycol (MPG) and upstream propylene oxide (PO) markets expect familiar challenges, including oversupply and weak demand, will persist well into 2025. OUTLOOK '25: Europe polyols and isocyanates demand recovery handicapped by sluggish downstream markets The polyols and isocyanates market in Europe is finishing 2024 with lethargic consumption, with 2025 being held back by slow momentum from major end user sectors. OUTLOOK '25: Slow start to 2025 expected in Europe propylene glycol ethers market, no significant supply concerns A subdued start is anticipated in the European market for propylene glycol ethers in 2025. Price changes are expected to continue to be led by availability fluctuations with few anticipating much demand recovery in the first half of the year and potentially beyond. OUTLOOK '25: Europe butyl glycol ethers market set for lacklustre H1 2025, focus remains on availability The outlook for the European butyl glycol (BG) and butyl di-glycol (BdG) market is largely subdued heading into 2025. Despite a spate of planned maintenances scheduled for Q1, there is not significant supply concern in the main. OUTLOOK ’25: Europe BPA market set to navigate various challenges The European bisphenol A (BPA) market is not likely to face an easy ride in terms of demand in 2025, with no sign of any recovery in key end sectors, a few lost outlets structurally and with competition from Asia likely to remain strong. OUTLOOK ’25: MA, PA demand weakness ongoing, H1 supply outlooks differ but Asian reliance growing European maleic anhydride (MA) and phthalic anhydride (PA) markets in Europe will face similar supply-demand dynamics in 2025 to those in 2024, with a challenging macroeconomic environment expected to continue crippling demand for most of the year and complex supply scenarios with difficult logistics continuing. OUTLOOK '25: Europe melamine still in survival mode amid poor demand, high production costs European melamine suppliers remain pressured by high production costs and low margins heading into 2025. OUTLOOK '25: Europe IPA and MEK supply to remain ample despite import constraints, capacity consolidation The European isopropanol (IPA) and methyl ethyl ketone (MEK) markets were defined by muted consumption and ample availability for most of 2024. OUTLOOK '25: Europe ECH supply rather than demand under the spotlight for 2025 Europe epichlorohydrin (ECH) supply rather than demand is likely to be subject to more change in 2025, in view of Westlake’s ECH Pernis plant idling and possible adjusted trade flows in response to various trade defense cases and measures. OUTLOOK ’25: Europe fatty acids, alcohols to grapple with ongoing high feedstock costs in H1 European oleochemicals face another challenging year ahead, with squeezed fatty alcohol supply and improved palm-based fatty acids availability versus elevated feedstock costs. OUTLOOK '25: EU epoxy players on the cusp of a new normal, pending EU AD decision EU Epoxy market players are preparing for a new normal in 2025 and shifts in sourcing strategy, based on expected anti-dumping (AD) duties on Chinese and other Asian product, but the prospect of a recovery remains slim. OUTLOOK ’25: Europe paraffin wax market likely to see minimal demand recovery The forecast for European paraffin wax in 2025 is weak, particularly during the first half. The market is expected to face ongoing challenges like those experienced in 2024. OUTLOOK '25: EU ADD leverage on Chinese TiO2 imports dimmed by weak demand The final EU anti-dumping measures on Chinese TiO2 imports are unlikely to bring any domestic support into 2025, despite profitability struggles in the TiO2 industry, as the underlying demand outlook remains bleak. OUTLOOK ’25: Poland’s Azoty, Orlen face hard yards on journey back to health When in November Poland’s Grupa Azoty fairly leapt at the chance to move into the government-backed production of explosives, it served as a further confirmation of the deep hole Europe’s second largest fertilizer maker finds itself in.

13-Jan-2025

HOUSTON (ICIS)–A startup company expects demand for carbon dioxide (CO2) from enhanced oil recovery and other uses could exceed supplies of the gas, opening an opportunity for the firm's carbon-capture units, which forego solvents to capture the gas from the atmosphere. Enhanced oil recovery (EOR) in the US consumed 1.9 billion cubic feet/day of CO2 in 2022 to produce 245,000 bbl/day of crude, according to the consultancy Advanced Resources International, implying that each barrel required 7,755 cubic feet or 2.5 tonnes of CO2. The start-up company, Carbon Capture & Commercialization, expects a shortage of CO2 given its use in oil production and depletion from natural reservoirs. Companies like Occidental Petroleum are already turning to direct air capture (DAC) to secure supplies of the gas for EOR. Carbon Capture estimates that its units will be able to capture CO2 from the atmosphere at a cost of $100/tonne. The company does not plan on operating the units and selling the CO2, said Sam Adams, managing director at Carbon Capture. He talked about the company in an interview with ICIS. Instead, Carbon Capture intends to sell or lease the units and leave the business of capturing CO2 to another company. THE CO2 SHORTAGECarbon Capture is betting that US oil producers will require new sources of CO2 to replace supplies from natural underground reservoirs. Natural sources accounted for more than three-quarters of the CO2 used in enhanced oil recovery in 2022, according to the consultancy Advanced Resources International. The following shows the principal natural reservoirs that supply CO2 for EOR: McElmo Dome in Colorado state. Jackson Dome in Mississippi state. Bravo Dome in New Mexico state. Doe Canyon in Colorado state. Sheep Mountain in Colorado state. Source: Advanced Resources International Kinder Morgan says it is the largest CO2 transporter in North America, with shipments of 1.5 billion cubic feet/day. Other large players in the CO2 market include ExxonMobil, which increased its role with the 2023 acquisition of Denbury, and Occidental Petroleum. Occidental Petroleum has already realized that it would run out of CO2 if it wanted to develop an additional 2 billion bbl of oil in the Permian basin, CEO Vicki Hollub said in 2022 at the CERAWeek by S&P Global energy conference. That impending shortage is what initially compelled Occidental to pursue direct air capture. Developing more natural sources was not worth the cost, according to Hollub. Other oil and gas producers could face the same constraints in the next few decades, according to Global Energy Monitor, a non-profit organization that monitors energy projects with the intent to promote decarbonization. It said most estimates point to the US running out of natural CO2 by mid-century. Before such shortages take place, oil producers will need to operate wells that could benefit from EOR. Developing new reservoirs of natural CO2 will need to be prohibitively expensive. And other sources of CO2, such as natural gas processing plants or ethanol plants, will need to be insufficient to meet demand. OTHER MARKETS FOR CO2While EOR is the most significant market for CO2, it is not the only one. Concrete is another one as well as older buildings, said Adams of Carbon Capture. Many of these older buildings will be unable to meet new greenhouse gas regulations without prohibitively expensive upgrades. Modular carbon-capture units could allow these buildings to satisfy regulations, including those mandating net-zero CO2 emissions. Carbon Capture cited also greenhouses. Some polyols are made with CO2, and other CO2-based products could become commercialized if producers could secure a pure, low-cost and reliable source of the gas. If algae-based chemical and fuel production ever reaches a large enough scale, these operations could require CO2. If fertilizer producers want to convert green ammonia into urea, they will need a source of CO2. If e-fuels and e-chemicals take off, these would require a source of CO2 to react with green hydrogen. Cold storage and carbonation in the food and beverage market are well established markets, although they would require food-grade CO2. CO2'S JOURNEY FROM TRASH TO TREASURETo speed up CO2's transition into a commodity, production costs will have to decline. The current ethanolamines-based process used in carbon capture is not cheap because of the costs involved in releasing the CO2 from the solvents, Adams said. Those carbon-capture costs can be $900/tonne, according to Adams. The World Economic Forum (WEF) places the cost of direct air capture at $600-1,000/tonne. That compares with $100/tonne that Carbon Capture expects that it can achieve with its technology. CCC DITCHES SOLVENTS FOR GRAPHENE INKCarbon Capture's technology is avoiding the costs inherent in solvent-based DAC by relying on ceramic beads coated with plasma-functionalized graphene ink, Adams said. When it is time to release the CO2, a current is passed over a stack of the beads, heating them to 100-120 degrees Celsius, Adams said. It can take up to an hour to regenerate the beads and release the captured CO2. In all, the system consumes 100kWh/tonne of CO2, Adams said. So far, the company's beads have gone through 20 regeneration cycles without any significant degradation, Adams said. However, the graphene-based ink will degrade if it is overheated, and that limits how many watts can go through a single system and how large that system can be. Larger systems take longer to regenerate. To work around this constraint, Carbon Capture installs the systems in shipping containers that are up to 40 feet, according to Adams. A 40-foot unit could capture 1,500 tonnes/year in an urban setting. At full production, that could reach 1,800-1,850 tonnes/year. Regeneration times take 45-60 minutes for a 40-foot container. The ceramic beads would be contained in a cartridge, Adams said. These can be collected from the units and shipped to a central location, where the beads could be regenerated and the CO2 is extracted. WORKING ON SERIES A FUNDINGThese are still early days for Carbon Capture's technology. The company is working on starting its Series A funding, with an initial tranche of $2 million, Adams said. If Carbon Capture can close that first tranche, it could develop a pilot plant in the subsequent six to nine months. The company does have a prototype, and Adams uses technology readiness levels (TRL) to measure the technology's. On a scale from 1 to 9, the carbon capture capabilities are at TRL7, while the release is at TRL3, he said. Still, Carbon Capture's thesis for future commodity market for CO2 holds true, then the oil industry will need to find a source for the gas if it intends to continue EOR. The future of carbon capture could depend on continued oil production. Insight by Al Greenwood

02-Jan-2025

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 20 December. NEWS Brazil's chemicals likely to avoid higher tariffs as bilateral trade favors US – AbiquimBrazil’s chemicals producers are confident the sector would be mostly spared from potentially higher US import tariffs as the latter maintains a clear trade surplus in bilateral commerce, the country’s trade group Abiquim said to ICIS. Argentina's manufacturing, construction output falls in OctoberOutput in Argentina’s petrochemicals-intensive construction and manufacturing kept falling in October, year on year, the country’s statistical office Indec said on Friday. Mexico’s central bank cuts rates by quarter point to 10.0%, signals further cutsMexico's central bank on Thursday cut interest rates by 25 basis points (bps) to 10.0% and hinted at steeper cuts ahead. Colombia’s central bank lowers rates by quarter of a point to 9.5%Colombia's central bank on Friday lowered its benchmark interest rate by 25 basis points (bps) to 9.5%. Argentina’s YPF agrees with Shell to continue building LNG export projectYPF and global energy major Shell have signed an agreement to develop the first phase of a liquefied natural gas (LNG) export project, the Argentinian state-owned oil and gas major said. Brazil’s chemicals output up 1.6% in OctoberBrazil’s chemicals output rose by 1.6% in October, year on year, while plastics and rubber production increased by 4.9%, according to the country’s statistical office IBGE. Brazil central bank steps up currency defence as real slidesBrazil's central bank has mounted four currency interventions this week, spending nearly $6 billion to stem the decline in the Brazilian real (R). Chile cuts rates as growth concerns outweigh inflation risksChile’s central bank cut its benchmark interest rate this week by 25 basis points (bps) to 5.0%, balancing concerns over stubborn inflation with signs of economic weakness. Pemex remains ‘financially vulnerable’ as output flattens, crude prices fall – FitchMexico’s state-owned crude major Pemex “remains financially vulnerable” as its output is likely to flatten and crude oil prices are set to fall, US credit rating agency Fitch said. MOVES: Brazil Potash appoints fertilizer industry veteran Schmidt as board executive chairmanProducer Brazil Potash, which is advancing the $2.5 billion Autazes project within the state of Amazonas, has appointed fertilizer industry veteran Mayo Schmidt as the executive chairman of its Board of Directors effective 6 January. PRICING LatAm PE domestic, international prices stable as year draws to closeDomestic and international polyethylene (PE) prices were assessed as unchanged across Latin American countries. LatAm PP domestic, international prices steady as 2024 endsDomestic and international polypropylene (PP) prices were steady across Latin American countries. Braskem Idesa seeks January PE price increase in MexicoBraskem Idesa (BI) is seeking a price increase of $110/tonne on high density polyethylene (HDPE) and for low density polyethylene (LDPE) as of 1 January, according to a customer letter.

23-Dec-2024

HOUSTON (ICIS)–The Fertilizer Institute (TFI) has announced the launch of the Verified Ammonia Carbon Intensity (VACI) program, which is a voluntary certification of the carbon footprint of ammonia production at a specific facility. The VACI is the first program of its kind with the industry group saying it is designed to provide ammonia consumers seeking to reduce emissions across their supply chains with an independent and certifiable carbon intensity score. TFI said the VACI certification framework will standardize the approach for calculating the carbon intensity of ammonia encompassing all aspects of ammonia manufacturing from feedstock production through the finished product at the plant gate. Producers will use the VACI standard to calculate the carbon intensity of ammonia produced at their facilities then an independent, third-party auditor will then verify or validate that the carbon intensity score is accurate. TFI president and CEO Corey Rosenbusch said ammonia is a critical input for both agriculture, emissions control and many commercial products including fabric and pharmaceuticals. “As agriculture and other industries increasingly look to develop more sustainable and resilient supply chains, the Verified Ammonia Carbon Intensity program provides ammonia consumers with certifiable transparency that will allow them to quantify the positive impact using low-carbon ammonia has on their greenhouse gas emissions footprint,” said Rosenbusch. Ammonia production typically uses natural gas as a feedstock for its hydrogen component and is an energy-intensive process with substantial carbon dioxide emissions as a byproduct. Currently there are US ammonia producers who are investing in technologies to dramatically reduce emissions with the VACI enabling them to document the varying levels of emissions reduction these technologies provide. The VACI program was developed by TFI in collaboration with technical industry experts from producers CF Industries, LSB, Nutrien, OCI and Yara with guidance from Hinicio, a strategic and technical consulting firm specializing in hydrogen and its derivatives and industrial decarbonization. Facilities certified under the program include Nutrien at Redwater in Canada and CF Industries in Donaldsonville, Louisiana, with audits that have been completed. Audits for LSB Industries in El Dorado, Arkansas, and CVR Energy in Coffeyville, Kansas, in progress. TFI said the VACI is undertaking a 60-day public consultation period for ammonia consumers and stakeholders to provide feedback on the program and its methodology and intends to refine the program based on comments received.

20-Dec-2024

HOUSTON (ICIS)–Dakota Gasification Company has confirmed that the company and fertilizer producer OCI decided earlier this month to dissolve their joint marketing venture N-7 and that it will begin its own fertilizer sales and marketing beginning 1 February. This move comes after a strategic review by both parties it was determined to dissolve the joint venture, which was focused on selling nitrogen fertilizers, industrial ammonia, urea liquor and diesel exhaust fluid (DEF). Since the partnership formed in July 2018, N-7 has shipped over 26.5 million short tons of product to more than 520 customers in 3,100 cities. The company said it will continue to offer the same products moving forward including ammonia and urea, and rather than reduce their workforce this change has lifted levels. “We have expanded our team with highly skilled professionals to enhance our ability to deliver exceptional products and service to our customers,” said a Dakota Gasification Company spokesperson. The parent company said in a statement the decision reflects a mutual recognition of the unique growth opportunities available to both companies independently. “This partnership allowed us to serve our customers with exceptional products while achieving significant milestones together,” said Daniel Gallagher, Basin Electric commodity sales & trading director. “Dakota Gas remains committed to producing and delivering high-quality products to our customers.” The companies will honor all agreements previously undertaken by N-7 with a spokesperson saying, “the market has responded favorably to our decision”. Netherlands-based OCI has not responded for comment but when the partnership was first announced it had stated N-7 would market and distribute product from Iowa Fertilizer Company, the OCI Partners operations in Texas and the Dakota Gas facility in North Dakota. In addition, it intended to market any imported product from their operations outside North America. Ending the N-7 venture follows the sale of Iowa Fertilizer Company and OCI Beaumont.

19-Dec-2024

HOUSTON (ICIS)–The US Department of Agriculture (USDA) announced it is making more than $116 million in investments for domestic fertilizer production to increase competition, lower fertilizer costs for farmers and lower food costs for consumers. USDA is awarding the funds through the Fertilizer Production Expansion Program to help eight facilities expand innovative fertilizer production in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma and Wisconsin. “When we invest in domestic supply chains, we drive down input costs and increase options for farmers. Through today's investments to make more fertilizer, USDA is bringing jobs back to the United States, lowering costs for families, and supporting farmer income,” said Tom Vilsack, USDA Secretary. Through the Fertilizer Production Expansion Program, the USDA has invested $517 million in 76 fertilizer production facilities to expand access to domestic fertilizer options for growers in 34 states and Puerto Rico. It is expected these efforts will see US fertilizer production increase by 11.8 million short tons annually and create more than 1,300 jobs in rural communities. Projects receiving this round of funding include California company Biofiltro USA Inc. which will use a $2.3 million grant to construct a new facility to process manure from dairy cows and yield more than 33,000 cubic yards of composted fertilizer alternative annually. In Georgia, Reve Solutions Inc. will have $1.3 million to expand a biosolid fertilizer composter and increase capacity through additional equipment and working capital for two production locations. This undertaking is expected to generate more than 30,000 short tons of fertilizer nutrient and create five new jobs. There is also a $2.3 million grant going to Kansas-based Farmers Cooperative Association who will expand an existing dry fertilizer facility with additional storage and processing capacity. The project will improve the efficiency of order processing and will increase its dry fertilizer production to 24,500 short tons per year.

18-Dec-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 13 December. S Korea bourse extends fall as political woes deepen; petrochemical shares slump By Pearl Bantillo 09-Dec-24 15:36 SINGAPORE (ICIS)–South Korea’s benchmark stock market index continued to bleed on Monday amid political instability wrought by the shock martial law announcement on 3 December, with impeachment motions against President Yoon Suk Yeol dropped over the weekend due to lack of quorum. INSIGHT: India poised to take up growing role in Asia ethylene ecosystem By Josh Quah 09-Dec-24 18:22 SINGAPORE (ICIS)–As far as the numbers on paper go, India may not look like a conspicuous power in the ethylene markets. The south Asian country imported around 76,400 tonnes of ethylene in 2022, a figure that dropped to around 51,800 tonnes in 2023. China Nov export growth slows to 6.7% on year; imports fall 3.9% By Jonathan Yee 10-Dec-24 15:37 SINGAPORE (ICIS)–China's exports in November grew at a slower year-on-year rate of 6.7% to $312.3 billion amid trading headwinds from a potential wave of tariffs to be levied by the incoming US administration. INSIGHT: Key takeaways for 2025 petrochemical market outlook at ICIS China customer day By Jenny Yi 10-Dec-24 19:15 SINGAPORE (ICIS)–A slow projected global recovery, the growing prominence of Africa and southern America for producers, and a bearish outlook for Asia olefins and aromatics prices in 2025 were among the topics discussed at the ICIS China Customer Day event in Shanghai on 21 November. Asian SBR import offers see support from firming upstream markets By Ai Teng Lim 11-Dec-24 13:18 SINGAPORE (ICIS)–Asian styrene-butadiene-rubber (SBR) producers are seeking to sell higher, citing upstream cost push. China to adopt looser monetary policy in 2025 as US tariffs loom By Jonathan Yee 11-Dec-24 15:36 SINGAPORE (ICIS)–China is expected to implement a “more proactive fiscal policy” and a “moderately loose” monetary policy for next year, according to the country’s top officials, amid economic headwinds and looming heavy tariffs from the US. UAE to impose 15% minimum top-up tax on large multinationals from Jan ‘25 By Jonathan Yee 12-Dec-24 12:28 SINGAPORE (ICIS)–The UAE will impose a minimum top-up tax (DMTT) on large multinational companies, to align its tax system to global standards. Strong PKO cost supports Asia fatty alcohol mid-cuts C12-14 By Helen Yan 12-Dec-24 13:50 SINGAPORE (ICIS)–Elevated feedstock palm kernel oil (PKO) prices and demand heading into 2025 are supporting Asia’s fatty alcohol mid-cuts C12-14 market. INSIGHT: Shift in rules on China phosphate ferts exports hit market sentiment By Rita Wang 12-Dec-24 19:50 SINGAPORE (ICIS)–A shift in the customs rules in China means that phosphate fertilizers will only be sold on the domestic market for the time being. However, sluggish demand as players work through winter reserves could stand to weigh on pricing. China domestic BD gains boost Asian market discussions By Ai Teng Lim 13-Dec-24 11:54 SINGAPORE (ICIS)–Sentiment is more upbeat this week in Asia’s spot butadiene (BD) import market amid recent strong gains in China’s domestic market.

16-Dec-2024

HOUSTON (ICIS)–Planning to build their first US plant in Kentucky, Swedish producer Cinis Fertilizer announced it has been approved for tax incentives. The company said it is currently planning the construction of the company’s next production facility in Hopkinsville, Kentucky and has applied for both grants and tax incentives, nationally and locally. The Kentucky Economic Development Finance Authority (KEDFA) has preliminary approved a 15-year incentive agreement with Cinis Fertilizer under the Kentucky Business Investment program. For final approval and to receive the tax credits of up to $1.5 million, the company must invest about $109 million and meet annual targets such as creating 65 full-time jobs in Kentucky over 15 years and paying an average hourly wage of $38, including benefits. Additionally, KEDFA approved Cinis Fertilizer for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. “We are grateful for the warm welcome we have received in Kentucky and look forward to contributing to the future of Hopkinsville,” said Jakob Liedberg, Cinis Fertilizer CEO. “Being granted these tax incentives is a great start and in parallel we are working on securing grants, where the processes and timelines are longer.” First announced in 2023, this will be the producer’s their third plant with the two other plants located in Sweden. The company has already signed a 10-year agreement with Ascend Elements, a leading American manufacturer of engineered battery materials, regarding the sourcing of sodium sulphate, and have arranged with potash producer K+S Minerals to purchase potassium chloride. This plant is scheduled to start in 2026, with it planned to have a capacity of up to 300,000 tonnes of potassium sulphate yearly.

13-Dec-2024